Chapter 15, Problem 15.23EX

(a)

To determine

Available-for-sale securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs, or manage interest risk.

To indicate: The presentation of available-for-sale investments on the current assets section of the balance sheet.

(b)

To determine

To indicate: The presentation of available-for-sale investments on the stockholders’ equity section of the balance sheet.